Truss, Kwarteng ‘Get It.’ Scrap Tax Cut For UK’s Richest
Over the weekend, as a sort of addendum to "Chaos Will Return To UK Assets," I spelled out the UK's "checkmate" scenario and offered one small suggestion for how Liz Truss and Kwasi Kwarteng might go about placating the bond vigilantes.
"Traders should call [the BoE's] bluff on October 17 and keep the pressure up until either the LDI schemes crack, Truss folds or the BoE has to commit to open-ended QE in perpetuity," I wrote, referencing the end date for the bank's purportedly "temporary" long-
Truss had to take some reasonable action before there was any chance for the Fed to help the BOE. Was it enough? “Monday’s decision was a step in the right direction, but it’s probably too little, too late. ” These observations are all obvious, including my previous comments.
Given Kwarteng’s background as a libertarian, he seems oblivious to “free markets”.
I am shocked that only 660,000 people in Britain make over BRP150,000 per year. That’s the UK’s 1%. We have kids making that much. I must be completely out of touch to fail to realize that.
In fairness, 150,000 GBP used to be worth a lot more…